Building and Branding in Web3

As the title suggests, this article is not a What is Web3? kind of a write-up (we’ve got other articles for that) — this one deals with the specific impact of Web3 on the realm of branding, exploring how this tech evolution is influencing the way brands connect with, engage, and offer value to their customers.

It’s clear that Web3 is like a new playground where the rules are still being written. Tokens in Web3 could be as fundamental as websites were back when the internet first went mainstream with the introduction of the World Wide Web by Tim Berners-Lee. Just as early websites began as basic online directories and evolved into the dynamic, user-centric platforms of Web2, today’s tokens are at the starting line, waiting for the race to maturity.

While creating a token now is pretty straightforward, designing one that adds real value is totally different thing. Although there are thousands of tokens in existence, as evidenced by listings on platforms like Coinmarketcap. The lack of careful planning and clear purpose in many of these tokens will likely cause them to fail.

The transformative power of Web3 lies in sectors like finance, governance, and data control. Yet, we’re still figuring out the best practices while navigating a labyrinth of technological and legal hurdles. Beyond the usual buzzwords — smart contracts, cryptocurrencies, tokens, we’re grappling with the actual understanding of Web3’s full potential, especially given the media’s portrayal of blockchain technology and Web3 generally limited to cryptocurrency speculation.

Let’s be straightforward here: the current Internet model is flawed. We don’t have control over our private data and depend on centralized platforms for value exchanges. Our data management is still reminiscent of the early days of stand-alone computers, with central servers acting as the gatekeepers of our information. This raises significant trust issues: Can we trust these gatekeepers of our data to be infallible?

Web3’s promise is to change this outdated system. How? By decentralizing data control and embedding value exchange into the Internet’s fabric, Web3 aims to restore data ownership and trust in digital interactions. Yes, the journey is extremely complex, but the destination — a more secure, transparent, and equitable Internet — seems to be worthy of all the effort — it will redefine our digital lives.

The infrastructure of Web3, underpinned by public ledgers and smart contracts, significantly lowers the barriers to establishing user trust. For instance, the clarity and transparency provided by blockchain technology enable users to independently verify the authenticity and ownership of digital assets. This direct verification bypasses the need for intermediaries, fostering a more straightforward and trustworthy digital environment.

Smart contracts play a pivotal role in this ecosystem, offering a layer of security and trust that was previously difficult to achieve on the internet. These contracts can govern transactions, enforce agreements, and ensure that all parties adhere to predetermined rules without the need for a central authority. This technology was crucial in enabling transparent fundraising efforts, such as those for Ukraine, where smart contracts ensured that donations reached their intended recipients without the need for donors to trust the organizers personally.

Building and branding in the Web3 space is establishing a new territory with its own set of rules, opportunities, and pitfalls. The integration of digital assets, such as NFTs, into mainstream platforms like Twitter and potentially Instagram, highlights a growing recognition of the value these assets bring to both users and platforms. This move not only caters to the growing demand for digital ownership and authenticity but also helps platforms tackle the “cold-start problem” by attracting users with pre-existing digital collections.

Being good at collecting user data does pay off. A lot. We see big internet companies, like Meta and Amazon which have grown huge because they excel exactly at that: collecting and using data about us. Meta uses what it knows about our likes and habits to make its news feed and ads super relevant. Amazon looks at what we buy and search for to improve how it delivers stuff and to decide what new products to create. YouTube has so much video content that you can find something about nearly any topic.

These companies keep a tight grip on user data, making it hard for users to take their information and go elsewhere. This makes it difficult for users to leave, even if they want to.

But, hey, there’s something else coming! Actually, it has been coming for a while now and at this moment is already becoming a shift and we call it Web3. This new approach challenges the old way by suggesting a different model where users have more control. In Web3, thanks to blockchain technology, users own their content and digital items, like posts or videos and any content they’ve created. This means users can take their data and leave a platform if they want, without losing everything.

It’s obvious that this change could really shake things up for digital companies. It introduces a new kind of competition and might force them to rethink how they do business. For example, a new platform could lure users away from a bigger one by offering better terms or rewards, like what happened with the NFT trading platform LooksRare pulling users from OpenSea.

Web3 could also lead to more collaboration and shared value. For instance, an art gallery in Web3 could use artwork directly from the blockchain, making it easier for artists and galleries to connect without starting from scratch.

So, in simple terms, Web3 is about turning the tables on the traditional data-hoarding model and creating a more open and user-controlled internet. This could mean more power and freedom for users, and a need for big platforms to work harder to keep them around.

Web3 is reshaping the concept of community and ownership on the internet, creating an environment where users are not just passive consumers but active participants with a stake in the platforms they use. This new dynamic has the power to forge strong communities, much like passionate fans of a sports team or music band, where members feel a deep connection not only to the platform but to each other.

Take The Hundreds, a streetwear brand, as an example. By selling NFTs featuring their mascot, Adam Bomb, they’ve not only created a unique digital asset but also an entry ticket to an exclusive club. Owning an Adam Bomb NFT means getting special access to events and merchandise, tying fans closer to the brand. More than that, by offering royalties on certain collections featuring the mascot, they’ve given fans a literal investment in the brand’s success, encouraging a level of engagement and loyalty that’s rare in traditional consumer-brand relationships. This approach transforms fans into brand ambassadors, some even going as far as getting tattoos of the Adam Bomb, showcasing the powerful emotional and financial investment they have in the brand.

Some of the brands venturing into Web3 are now not just dipping their toes into the latest tech trend but are starting to create a whole corporate strategy around it. And they’re doing that by using Web3 to gain deeper insights into customer behaviors, tailor the customer journey more effectively, and engage with communities on a new level. This approach is also enhancing transparency in supply chains and bolstering credentials in corporate governance and sustainability.

In her article on Harvard Business Review — “How Brands Are Experimenting with Web3” Ana Andjelic emphasized particularly three avenues in Web3 that are proving fruitful for immediate business impact: virtual products, hybrid offerings, and decentralized ownership. Let’s take a look at what they mean for business today.

Brands are no strangers to the digital world, but Web3 lets them create digital goods like NFTs or virtual fashion items in games. This is gives a stronger connection and insight into their younger audiences — understanding where they spend their time and their digital habits.

Take luxury fashion as an example. Kering, which owns Gucci and Balenciaga, is tailoring experiences in the metaverse. While some might argue that Gucci’s foray into Roblox with its “Gucci Garden” was a skilled marketing stunt, it actually gave a fully immersive experience where a digital handbag fetched thousands of real dollars. Meanwhile, Ralph Lauren’s virtual winter sportswear in Roblox while giving avatars a style boost also reflected positively on the company’s real-world earnings.

These aren’t isolated marketing gimmicks. They’re strategic moves that give brands full control over their digital assets, much like they do in the physical world. But the impact goes deeper. Engaging in these virtual spaces offers a treasure trove of insights into what makes the next generation of consumers tick.

This is where the physical and digital start to blend. For instance, a pair of sneakers purchased in a store could come with a digital twin — an NFT that represents the same item in the virtual world. This duality adds a new layer to the product, enhancing its value both offline and online.

Here Web3 really starts to diverge from traditional corporate strategy. By giving consumers a stake in the product through blockchain technology, brands are actually cultivating a stronger sense of loyalty and community. Owning a piece of your favorite brand’s signature product and having a say in its future direction can be quite a convincing incentive.

As brands experiment with these Web3 approaches and just adapting to a new digital era they help with exposing Web3 and blockchain technology to the masses. The ones who can seamlessly integrate these virtual offerings and create meaningful digital interactions are the ones who’ll stay ahead. The real success of Web3 for brands lies in the genuine connections they forge with their customers, transcending the physical and digital realms.

Transitioning from the established corporate strategies to the ones in Web3 for a more meaningful connection between your brand and your audience requires a strategy itself. SourceLess is a platform designed to simplify this transition for brands and businesses. It equips businesses with the tools to craft a more secure, transparent, and customer-centric digital presence.

From the tokenization of assets to the implementation of smart contracts, SourceLess is brining a new model of digital interaction and ownership. Brands can now grow their audience and communities creating unprecedented loyalty and advocacy by offering additional benefits, advantages, ways of connecting with their products and services and even shares in the brand’s journey.

With SourceLess, the intricacies of Web3 become accessible. Our technology ecosystem is designed to be immune to malware and viruses, ensuring that your brand’s digital assets are safe from cyber threats. Additionally, our commitment to leveraging a 90% efficient hosting use reflects not only a bulletproof security web but also an eco-conscious footprint in the digital domain.

Through SourceLess, brands can:

Capitalize on Decentralization: Leverage our platform to decentralize your digital offerings, giving your audience true ownership and stake in your products.

Enhance Security and Trust: Build customer confidence with our blockchain-based solutions that ensure the privacy, integrity and authenticity of your digital assets.

Navigate Complexities with Ease: Rely on our expert guidance to make the technicalities of Web3 understandable and actionable for your business.

Drive Sustainable Growth: Adopt our green hosting solutions to not only protect your brand but also contribute to a more sustainable digital ecosystem.

SourceLess is a partner in your brand’s journey through the Web3 space. We invite you to join us in this transformative era, where the value is shared with the many who power your brand’s success. By incorporating SourceLess into your digital strategy and leveraging the unique features of Web3: interoperability, transparency, and user ownership, your brand becomes future-proof, as the core principles of trust, value creation, and user-centric design remain central to achieving success in this new and dynamic landscape.

Web3 has the potential to unlock a more valuable internet for everyone. New companies can build on Web3 infrastructure to create communities around their brands and product concepts much more easily than in previous iterations of the web. And even established platforms can leverage these forces by plugging into blockchain-based content networks and giving their users some ownership over their data. All of this means that the next era of the web will likely look a lot different — and more open — than the one we’re living with today. And this is exactly the new web that SourceLess is building and promoting.

Building and Branding in Web3 was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.